Six Years Later, Andersen Partners Settle Enron Charges

[flashl]

Four former auditors who worked on the Enron account are barred from appearing or practicing before the SEC.

Almost six years after Arthur Andersen went out of business in the wake of the Enron collapse, the Securities and Exchange Commission has finally settled charges against four former partners of the accounting firm in connection with the audits of the energy company's financial statements.

David Duncan, who was global engagement partner for the Enron account, consented to a civil injunctive action charging him with violating the antifraud provisions of the federal securities laws, and to a related administrative proceeding permanently suspending him from appearing or practicing before the commission. He settled without admitting or denying the allegations or findings.

Three other Andersen partners — Thomas Bauer, Michael Lowther and Michael Odom — settled charges that they had engaged in improper professional conduct in connection with their Enron work. They, too, are now denied the privilege of appearing or practicing before the SEC.

The commission alleged that from 1998 through 2000, Duncan was reckless in not knowing that the unqualified audit reports he signed on behalf of Andersen were materially false and misleading.

CFO

Six years, seems like yesterday.